At what percentage above the cost price must an article be marked so as to gain 8% after allowing the customer a discount of 10%?
A18%
B20% ✓ Correct
C28%
D10.8%
Correct answer: (B) 20%
Explanation
The article must be marked 20% above cost.
Take the cost price = 100; an 8% gain needs selling price = 108.
A 10% discount means SP = 0.9 x marked price.
0.9 x MP = 108, so MP = 108 / 0.9 = 120.
Mark-up = 120 - 100 = 20% above cost.
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